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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 950,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the companys common stock at the end of the year was $25.50. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 770 $ 1,810
Accounts receivable, net 15,900 9,000
Inventory 10,450 8,800
Prepaid expenses 1,950 2,400
Total current assets 29,070 22,010
Property and equipment:
Land 7,500 7,500
Buildings and equipment, net 20,700 20,500
Total property and equipment 28,200 28,000
Total assets $ 57,270 $ 50,010
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 11,000 $ 9,050
Accrued liabilities 900 1,450
Notes payable, short term 450 450
Total current liabilities 12,350 10,950
Long-term liabilities:
Bonds payable 5,000 5,000
Total liabilities 17,350 15,950
Stockholders' equity:
Common stock 950 950
Additional paid-in capital 4,950 4,950
Total paid-in capital 5,900 5,900
Retained earnings 34,020 28,160
Total stockholders' equity 39,920 34,060
Total liabilities and stockholders' equity $ 57,270 $ 50,010

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year Last Year
Sales $ 94,000 $ 89,000
Cost of goods sold 59,500 55,500
Gross margin 34,500 33,500
Selling and administrative expenses:
Selling expenses 10,000 9,500
Administrative expenses 13,500 12,500
Total selling and administrative expenses 23,500 22,000
Net operating income 11,000 11,500
Interest expense 600 600
Net income before taxes 10,400 10,900
Income taxes 4,160 4,360
Net income 6,240 6,540
Dividends to common stockholders 380 380
Net income added to retained earnings 5,860 6,160
Beginning retained earnings 28,160 22,000
Ending retained earnings $ 34,020 $ 28,160

Required:
Compute the following financial data for this year:

1.

Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

2.

Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

3.

Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

4.

Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

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